In Reply to: USD & Parity rate posted by kazza007k on Monday, 3. January 2011 at 20:14 Bali Time:
"however, it is predicted to go as high as 1.10 in the future." Says who?
Trading in currencies is IMHO more complicated than you may ever realise, and the whole world is involved - not only Australia, the US and Indonesia.
One reason for us getting more Indonesian Rupiahs now compared to long time ago is that the Rupiah in the past has been devaluated several times plus the Asian financial crisis in 1997/98. Inflation has also played its part, in Indonesia the same way as it did and does at home. With almost all prices in Bali going up at a good speed, I doubt that there eventually will be any profit for you, if at all.
The drop in value of the USD may be your way of thinking that you make a profit, most probably small considering the amounts involved. I would prefer to keep my money in an account or similar with a good interest, better than inflation. But, again, what do I know?
Do Google "devaluation in Indonesia" and you will get some historical facts.